cesb. Initially ADo and ASo are the relevant schedules.The equilibrium price level isand equilibrium real output is $billion.If the price level is 140 then real output is $(Click to select) v in inventories. This pushes the price level (Click to select) ▼billion, real expenditures are $billion, and there is an unintendedIf the price level is 110 then real output is $(Click to select) v in inventories. This pushes the price level (Click to select)billion, real expenditures are $billion, and there is an unintendedc. Now aggregate demand shifts from ADo to AD1 while aggregate supply remains at ASo.Aggregate demand has undergone a(n) (Click to select) v . As a result the equilibrium price level (Click to select) and has a value ofwhile equilibrium real output (Click to select) and has a value of $billion.d. Now aggregate supply shifts from ASo to AS1, while aggregate demand remains at ADO-Aggregate supply has undergone a (Click to select) v. As a result the equilibrium price level (Click to select) and has a value ofwhile equilibrium real output (Click to select) and has a value of $billion.< Prev5 of 16Next >McGrawHillDII吕0000F7F5F6F3F4 The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Acadia.Aggregate Demand and Aggregate Supply Schedules for AcadiaReal GDPPADO)(AD1)(ASo)(AS1)Price Level (2012 = 100)(2012 $ billions)140150200230280130170220220270120190240190240110210260160210100230280120170a. Draw a graph showing Acadia's ADO, AD1, ASo and AS1. Using the tools given below plot only the endpoints of the demand curves ADo and AD1. Plotall 5 points for each supply curve, ASo and AS1.cesAggregate Demand and Supplyfor a hypothetical economy, Acadia150Tools140ADOAD1130120ASoAS111010090100150200250300Real GDP (2012 $ billion)Price Level (GDP deflator 2012 = 100)

b. Initially ADo and ASo are the relevant schedules. The equilibrium price level is and equilibrium real output is $ billion. If the price level is 140 then real output is $ (Click to select) v in inventories. This pushes the price level (Click to select) . billion, real expenditures are $ billion, and there is an unintended If the price level is 110 then real output is $ (Click to select) v in inventories. This pushes the price level (Click to select) v. billion, real expenditures are $ billion, and there is an unintended c. Now aggregate demand shifts from ADo to AD, while aggregate supply remains at ASo. Aggregate demand has undergone a(n) (Click to select) ♥. As a result the equilibrium price level (Click to select) and has a value of while equilibrium real output (Click to select) v and has a value of $ billion.

b. Initially ADo and ASo are the relevant schedules. The equilibrium price level is and equilibrium real output is $ billion. If the price level is 140 then real output is $ (Click to select) v in inventories. This pushes the price level (Click to select) . billion, real expenditures are $ billion, and there is an unintended If the price level is 110 then real output is $ (Click to select) v in inventories. This pushes the price level (Click to select) v. billion, real expenditures are $ billion, and there is an unintended c. Now aggregate demand shifts from ADo to AD, while aggregate supply remains at ASo. Aggregate demand has undergone a(n) (Click to select) ♥. As a result the equilibrium price level (Click to select) and has a value of while equilibrium real output (Click to select) v and has a value of $ billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The table below shows aggregate demand and aggregate supply schedules in a hypothetical economy, Acadia. Aggregate Demand and Aggregate Supply Schedules for Acadia Real GDP Price Level (2012 = 100) 140 130 120 110 100 (ADO) 190 210 230 250 270 (AD1) (ASO) (2012 $ billions) 240 260 280 300 320 270 260 230 180 110 (AS1) 310 300 280 250 190 a. Draw a graph showing Acadia's ADo, ADI, ASo, and AS1. Plot only the endpoints of the two aggregate demand curves and all five points for each of the two aggregate supply curves. b. If initially ADo and ASo are the relevant schedules, what are Acadia's equilibrium price level and real output? What happens if the price level is 140? 110? c. If aggregate demand shifts from ADo to AD1 while aggregate supply remains at ASo what are Acadia's new equilibrium price level and real output? Describe this change in aggregate demand. d. If aggregate supply shifts from ASo to AS1 while aggregate demand returns to ADo, what are Acadia's new equilibrium price level…
The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD1 to AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, where previously it was $300 billion. 170 160 150 140 - 130 AD2 120 110 AD, 100 90 100 200 300 400 500 600 700 800 OUTPUT (Billions of dollars) The following table lists several determinants of aggregate demand. Complete the table by indicating the change in each determinant necessary to increase aggregate demand. Change Needed to Increase AD Wealth Taxes Interest rates The value of the domestic currency relative to the foreign currency PRICE LEVEL
In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Shortrun aggregate supply longrun aggregate supply 30 $1395 $1125 $1200 40 $1330 $1150 $1200 50 $1265 $1175 $1200 60 $1200 $1200 $1200 70 $1135 $1225 $1200 80 $1070 $1250 $1200 90 $1005 $1275 $1200 If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000? Cyclical unemployment/Inflationary pressures
Refer to the data in the table given below. Suppose that the present equilibrium price level and level of real GDP are 100 and $280, and that data set A represents the relevant aggregate supply schedule for the economy. (A) Price Level 100 100 100 100 Real GDP 205 230 255 280 (B) Price Level 110 100 95 90 Real GDP 230 230 230 230 (C) Price Level 110 100 95 90 Real GDP 280 255 230 205 a. What must be the current amount of real output demanded at the 100 price level? Real output demanded = $ b. If the amount of output demanded declines by $25 at the 100 price level shown in A, what will be the new equilibrium real GDP? The new equilibrium level of real GDP = $ In business cycle terminology, what would economists call this change in real GDP? (Click to select)
Make 1 demand graph and 1 supply graph to plot the data in the table Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown below: Amount of Real GDP Demanded, Billions Price Level (Price Index) Amount of Real GDP Supplied, Billions $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100
The following are aggregate demand and supply schedules for a hypothetical economy. All figures are in $ billions. Aggregate Quantity Demanded Price Index Aggregate Quantity Supplied 2360 2400 2480 2600 2760 3000 3260 3600 3500 3400 3300 3200 3100 3000 2900 2800 120 130 140 150 160 170 180 190 Note: Potential GDP is 3,000. Refer to the information above to answer this question. Assume that technological change increases aggregate supply by 340. What would be the result? An inflationary gap of 340. A recessionary gap of 240. A new full-employment level of Real GDP of 3,340 with no change in prices. A new equilibrium of Real GDP of some indeterminate level depending on how much prices fell. A new full employment level of Real GDP of 3,340 and lower prices.
Question 6 refers to the graph below. Aggregate Supply1 Aggregate Supply2 Aggregate Supply3 Aggregate Demand4 Aggregate Demands Aggregate Demand1 Aggregate Demand3 Aggregate Demand2 REAL GROSS DOMESTIC PRODUCT 25. In the graph above, crowding in is shown by which of the following shifts? (A) Aggregate Demand to Aggregate Demand4 to Aggregate Demands (B) Aggregate Demand to Aggregate Demands to Aggregate Demand4 (C) Aggregate Demand to Aggregate Demand2 to Aggregate Demand3 (D) Aggregate Demand1 to Aggregate Demand3 to Aggregate Demand2 (E) Aggregate Supply to Aggregate Supply2 toAggregate Supply3 PRICE LEVEL
In 1997, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule: Price Level aggregate demand short-run aggregate supply1475 long-run aggregate supply 90 $1505 $1175 $1440 100 $1470 $1250 $1440 110 $1435 $1325 $1440 120 $1400 $1400 $1440 130 $1365 $1475 $1440 140 $1330 $1550 $1440 150 $1295 $1625 $1440 What was Mistania’s short-run equilibrium output in 1997?
The table below presents information on aggregate demand and aggregate supply schedules in the country of Microtania in 2005. Price level Schedule A Schedule B Schedule C $1685 $1415 $1625 $1640 $1460 $1625 $1595 $1505 $1625 $1550 $1550 $1625 $1505 $1595 $1625 $1460 $1640 $1625 $1415 $1685 $1625 90 100 110 120 130 140 150 Which best represents the aggregate supply curve that is emphasized in the neoclassical economic perspective? OSchedule A OSchedule B OSchedule C
The following table presents information on average price level and output (Real GDP) for Nickeltown in 2003. Plot the points on the graph below.Average Price Level Output (Real GDP) 70 $3000 50 $5000 30 $7000 20 $8000 0 $10000 When these points are plotted, which curve do they represent?Aggregate Demand/Short-Run Aggregate Supply/Long-Run Aggregate supply
The following table gives the aggregate demand and aggregate supply schedules in January 2016 for a particular country. (Ignore the AD2 and AS2 columns until question (d) below and AD3 until question (h).) Price level Aggregate demand (£ billions) AD2 AD3 Aggregate supply (£ billions) AS2 95 1000 950 100 970 970 105 950 1000 110 930 1030 115 915 1060 120 900 1100 a) Draw the aggregate demand and aggregate supply curves, labelling them AD1 and AS1. b) What is the equilibrium level of national income? c) What is the equilibrium price level?
In 2006, the economy of Singsville had an aggregate demand and aggregate supply according to the following schedule:Price level Aggregate Demand Short-Run Aggregate Supply100 $1445 $1085110 $1380 $1140120 $1315 $1195130 $1250 $1250140 $1185 $1305150 $1120 $1360160 $1055 $1415 What was the equilibrium price level in Singsville in 2006?